National Express has said it is back on track after a recovery plan led by new chief executive Dean Finch sparked a 38% jump in annual profits.

The bus, coach and rail operator highlighted its improved prospects by restoring the dividend it axed during a disastrous 2009, when it was forced to return its loss-making East Coast rail franchise to the Government.

Since taking the helm last February, Mr Finch has increased the focus on costs, as well as revamped the bus division and secured a franchise extension on its C2C London commuter service from Southend and Tilbury.